the beginning of the end, I fear.
I hope not. I have 3 and I love 'em.
It's a great way to enjoy movies from the iTunes store. I've also converted many (though not nearly all, yet) of my DVDs to the Apple Universal format (thanks, Handbrake!), which works fantastically on my family's two iPod touches, 5 iPhones, 3 Apple TVs, 4 laptops and, soon, two iPads.
I find its a perfect way to bring my iTunes content to the living room. Could it use more features? Sure, as can anything. Does it do its job? Yes, very well. And my kids can get to their stuff without losing (or destroying) any DVDs.
My Apple TVs are hooked up to a Sony 55" 720p LCD RPTV, a 40" Samsung 1080p LCD TV and a 720p Optoma DLP projector shooting on to a 105" screen.